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Case Reference:
M/s. US Electricals v. Assistant Commissioner (ST) (FAC), Washermanpet Assessment Circle, Chennai – Madras High Court, W.P. No. 6262 of 2025, decided on 17.03.2025
Relevant Section: Section 75(4) of the CGST Act, 2017
Category: Assessment order set aside – Violation of principles of natural justice (personal hearing not granted)
Facts (Paras 2–3)
The petitioner, M/s US Electricals, was issued a show cause notice under Section 73 of the Tamil Nadu GST Act, 2017, alleging a mismatch between turnover declared in GSTR-3B and income reflected in Form 26AS. The petitioner stated that the difference arose from receipts related to pre-GST period works. However, as the petitioner was unaware of the show cause notice uploaded on the GST portal, it was only after being informed telephonically by the Department that he filed a reply on 28.12.2023 with all supporting documents and requested a personal hearing.
Despite this, the Assessing Officer passed the assessment order on the same day, without considering the petitioner’s reply or providing a personal hearing. Later, even the rectification petition filed by the petitioner was rejected, and the entire disputed tax amount was recovered by debiting his e-credit ledger.
Questions before the Court (Para 1 & 4)
Whether the assessment order passed without granting the petitioner an opportunity for personal hearing, despite submission of a detailed reply, is sustainable under Section 75(4) of the CGST Act, 2017.
Court’s Observations (Paras 6–7)
The Hon’ble Justice Krishnan Ramasamy noted that though the petitioner had filed a reply to the show cause notice, the respondent proceeded to pass the order without providing an opportunity of personal hearing. This omission directly violated Section 75(4) of the CGST Act, which mandates an opportunity for hearing whenever adverse decisions are proposed. The Court emphasized that failure to adhere to this statutory safeguard constitutes a violation of the principles of natural justice.
Judgment (Para 8–9)
The Court held that the impugned order dated 05.02.2025 was invalid for want of compliance with Section 75(4). Accordingly, it:
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Set aside the assessment order; and
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Directed the respondent to reconsider the matter afresh after granting personal hearing and considering the petitioner’s reply, within three weeks from the date of receipt of the order.
The writ petition was disposed of with no order as to costs.
Summary of Cases Referred
| S.No | Case Name | Citation/Year | Principle Laid Down |
|---|---|---|---|
| 1 | M/s. US Electricals v. AC (ST) | 2025 (Madras HC) | Assessment order without personal hearing violates Section 75(4) and natural justice. |
Between Fine Lines
This judgment reiterates that GST authorities cannot bypass the mandatory requirement of granting a personal hearing before finalizing assessment orders under Section 75(4) of the CGST Act. Even if a reply is filed, absence of oral hearing renders the order invalid. Businesses should vigilantly track notices on the GST portal and ensure acknowledgment of hearing opportunities to prevent ex parte orders.
Disclaimer – “The above summary is for academic purpose only; not formal legal opinion. Seek professional opinion before application. Author or publisher or website shall not be responsible for any usage in any form.”